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Bitcoin has been consolidating within a $1,500 range over the past seven weeks. With BTC currently pushing higher and the fundamentals aligning in favor of bulls, analysts have begun to expect a strong rally into the end of a year.
This may not take place, though, an analyst keeping an eye on options has noted. He added that with whales likely to sell into the end of the year for tax purposes, BTC may not move higher.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Unlikely to Be a “Mega” Bitcoin Pump in Q4: Analyst
Options-focused crypto-asset analyst “Theta Seek” thinks that it is unlikely Bitcoin rallies into the end of the year. He recently shared a chart indicating that with options underwriters pricing monthly implied volatility at around 30% and whales likely to sell Bitcoin for tax purposes, there may be a short-term downtrend or consolidation:
“Its hard to for me to imagine a Q4 pump mega. All whales selling in order to prep to tax. Unless you’re telling me that the majority of crypto are in tax havens such as SG and HK Sentiments shared amongst options market makers who are pricing monthly IV at 30%+.”
Its hard to for me to imagine a Q4 pump mega.
All whales selling in order to prep to tax.
Unless you’re telling me that the majority of crypto are in tax havens such as SG and HK
Sentiments shared amongst options market makers who are pricing monthly IV at 30%+#BTC pic.twitter.com/sUSRiLI2q2
— Theta Seek (@thetaseek) October 17, 2020
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
It Will Come Eventually…
Despite some thinking that we may need to wait a while on a Bitcoin mega pump, most are sure that it’s well on its way.
Vinny Lingham, the CEO of Civic and a partner at Multicoin Capital, recently said that there is a good chance Bitcoin rallies parabolically over the next year. Commenting on Twitter, the long-time crypto investor said:
“I haven’t been this bullish on #Bitcoin since 2016. Macro events are teeing us up for another bull run. BTC could go 3-5X in the next 12 months, but if it goes 5X+, we’re back to bubble zone. Key indicator is BTC dominance – if it drops below 35% during the run, caveat emptor.”
I haven't been this bullish on #Bitcoin since 2016. Macro events are teeing us up for another bull run. BTC could go 3-5X in the next 12 months, but if it goes 5X+, we're back to bubble zone. Key indicator is BTC dominance – if it drops below 35% during the run, caveat emptor.
— Vinny Lingham (@VinnyLingham) October 7, 2020
This optimism has been echoed by other market participants.
Dan Tapiero, co-founder of Gold Bullion International, also said that he thinks Bitcoin will rally five to ten times higher this market cycle. He thinks that macroeconomic trends are favoring an exponential price explosion in the years ahead.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Photo by Matthew on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com TitleOptions Trends Makes it Hard for This Analyst to Imagine a Bitcoin "Mega Pump"
